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Debt Management Plan Reviews

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By
Scott
Scott Nelson Profile Picture

Scott Nelson

Managing Director

MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

Learn more about Scott
&
Janine
Janine Marsh Profile Picture

Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Feb 6th, 2024
Could you legally write off some debt? Answer below to get started.

Total amount of debt?

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Featured in...
debt management plan reviews

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Are you thinking about starting a Debt Management Plan (DMP) and want to make sure you make the best choice? You’re at the right place. 

Every month, over 170,000 people visit our website looking for guidance on debt solutions. You’re not alone. 

In this easy-to-read guide, we’ll share:

  •  What a Debt Management Plan (DMP) is and how it works
  •  Steps to take if you’re feeling worried about debt
  •  The importance of a DMP review and how to prepare for it
  •  Ways to possibly write off some of your debt
  •  Answers to common questions about debt management

Managing debt can feel hard; some of us have been in your shoes. But don’t worry; we’re here to help you understand your options.

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

What is a DMP Review?

A DMP is a formal assessment of the terms and conditions of your debt solution, normally done by your DMP practitioner and the company they are associated with.

A DMP review assesses a variety of different factors that go into your DMP. To put it simply, they’re done to ascertain that your plan is fair towards you, that you’re not facing excessive difficulty in making regular repayments, and so on.

Under normal circumstances, DMP assessments are done at least once a year, but this can vary depending on your situation. For instance, your company may ask for a DMP review when your circumstances change.

Alternatively, it could be you requesting a DMP assessment if a significant change in your conditions means that you’ll require a formal change in the terms of your DMP. If that change is implemented, it will, of course, be communicated to your creditors.

If you need help, Stepchange Debt is a great initiative you can look to. The folks at Stepchange Debt will help you learn more about your situation.

» TAKE ACTION NOW: Fill out the short debt form

Why is a DMP Review Important?

A DMP is very important for a variety of reasons.

Since your debt managers are trying to help you pay your debt back as quickly as possible, they may want to check on how good your current debt solution is for you.

If they find certain hindrances and irregularities, they could suggest changes to the plan to make sure that you’re able to pay your debts back sooner than before.

Our circumstances can change often and with great ambiguity. Sometimes, your DMP may be affected by those changes. A DMP review can help your DMP practitioner and your creditors know what’s going on and try to fix it.

Your DMP review will address whether the monthly payment you make is set at the right threshold. If you’re underpaying and can easily afford to pay a larger sum in payments each month, your DMP review can identify that.

On the other hand, if you’re paying too much, and if certain unexpected expenditures have disrupted your ability to pay as much as you’re paying, your DMP review can fix that as well.

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:


Situation

Monthly income £2,504
Monthly expenses £2,345
Total debt £32,049

Monthly debt repayments

Before £587
After £158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

Get started

How Do You Prepare for a DMP Review?

There are certain things you need to do and documents you need to provide when you’re gearing up for your DMP review.

I’ve listed these requirements below. Let’s get right to discussing them.

  1. Displaying proof of your income

Certain DMP management companies ask you to send proof of your current income before a formal review commences.

If you’re asked to do so, you can send them a copy of your most recent bank statement. It will have your income listed on it.

  1. Know the details of your income

Throughout the review process, you will be asked several details about your DMP and your income.

Make sure you’ve done your homework and that you know how often you’re paid, the amount, if it varies, and other logistical details.

It’s best to have these details at your fingertips, since you may be asked for them frequently.

Thousands have already tackled their debt

Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.

Natasha

I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.

Get started

Reviews shown are for The Debt Advice Service.

FAQs

Will a DMP affect my credit score?
Yes, a DMP can affect your credit score to a certain extent. If you keep missing payments on your DMP, it can have an adverse impact on your credit rating. On the other hand, if you keep making regular payments and act in a financially responsible manner, you may start to see your credit rating improve tremendously. You need to fulfil any explicit terms and conditions listed in your DMP. If you don’t you could run the risk of your DMP being revoked. You could also be hounded by your creditors and debt collectors. All in all, it depends on how well you adhere to the terms and conditions of the DMP.
Is a DMP review compulsory?
Most DMP provider companies are required by their regulatory authority to conduct these assessments regularly. So yes, a DMP review is a compulsory undertaking and you should take it very seriously. Also, you should do what you can to facilitate your provider in terms of the information you provide to them.
How much will a Debt Management plan cost me?
This varies, but a DMP will usually have a set-up fee. Certain DMP companies charge you a regular fee throughout the duration of the DMP as well. All in all, most of your costs will be associated with your management provider and the specific amounts will be communicated to you in a timely manner.
How often will I be asked for a review?
Usually, a DMP review happens once every twelve months. Again, this can vary. If your financial circumstances change multiple times a year, you could get a review more than once throughout the year. It’s about deciding if your DMP is best for you given your current circumstances, so you could be asked for a review more than once a year.
Can a DMP review benefit me?
Yes, a DMP review can benefit you tremendously. If you’re struggling with your present circumstances, a DMP review can arm you to deal with the situation effectively. It will let your creditors know that you’re facing problems with the current terms of your DMP. Then, you and your provider may be able to work out a solution that is easier to handle.

Wrapping it Up

A DMP review can be one of the most crucial phases of your entire DMP experience. 

You need to know what you’ll need to properly address your DMP review and make the most of it. A DMP review can make your DMP arrangement significantly easier for you if done right.

I hope this guide helped you more about what a DMP review is and how it can help you. If you need more assistance managing debts or debt advice, feel free to reach out.

Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

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The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.